Spokane Parishes Reach Agreement to Cover Sexual Abuse Claims
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The Roman Catholic Diocese of Spokane has reached agreements with two more insurance carriers on payments to cover sexual abuse claims as the diocese's bankruptcy case heads into mediation.
In a statement issued late Thursday, Bishop William S. Skylstad said CNA Insurance had agreed to pay $3.5 million and the Washington Insurance Guaranty Association, which took over the policies of defunct Home Indemnity Co., just under $1 million.
Counting interest, Skylstad said in the statement, the settlements boost the total to more than $20 million from six insurance companies to help settle claims of sexual abuse by priests that led the diocese to file for Chapter 11 bankruptcy protection in 2004.
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The diocese serves about 90,000 Catholics in Eastern Washington. When it filed for bankruptcy, it listed assets of $11 million against liabilities of at least $81.3 million -- the vast majority of that from dozens of sex abuse claims.
A mediation session was scheduled Friday before U.S. Bankruptcy Judge Greg W. Zive in Reno, Nev.